can you finance the remaining balance?
Tesla and Wells Fargo just announced that there will be competative financing options available. This is huge. Wells Fargo is the first major bank to back the Model S.
I have a blank check with credit line up to $60k for my Model S at 1.79% interest. Navy Federal, thanks to whoever told me of that place on this board, I can't recall who but its the best private car loan rate I could find.
I have a chicken/egg situation....
My Credit Union wants to see the Purchase Agreement before cutting a check. But I can't get the purchase agreement until I pay for the car.
Any suggestions here? Typically, a dealership will set up a auto loan that I would pay off with the Credit Union loan.
Does anyone have info from TM whether I would need to sign up for the Wells Fargo loan first, then pay that off with my Credit Union loan?
Sometime in the last 30 days before delivery you should receive the final MVPA. For that matter you sign the preliminary one when you convert your reservation to an order.
The Wells Fargo relationship was actually announced the day before the live delivery event.
The Wells Fargo relationship is not an exclusive deal. The press release does not give the interest rate but does say they intend to be competitive.
Bank of America already has a relationship with Tesla. In fact they financed the Roadsters until the car became unavailable.
So far Bank of America has only said they would finance the Roadster. No mention of Model S.
What rates are you all looking at?
When deflation hits, they'll be paying you to borrow -- negative interest! With Treasuries hovering just above 0%, there's an argument to be made that purchasers are de facto paying for the privilege of loaning money to the gov't already!
I contacted Wells Fargo and was quoted an APR of 5.24% on a 60 month loan. This does not seem particularly competitive. Has anyone else spoken with Wells Fargo or BofA and been offered a better rate?
what would be the purchasing process? when do you secure your loan for financing?
I was told by USBank that I could probably get a 2.6% rate on a 60 month loan (they have a special rate for EVs, but would need more information). I also found a local credit union that can do a 1.9%. Bank of America loosely quoted me 2.9%. If that Wells Fargo rate is legit, that's a joke!
My Credit Union (Technology Credit Union in the SF Bay Area) has 1.99% for 48 months. Interest goes as high as 3.49% for an 84 month (7yr) new car loan. At 1.99%, I can keep my money in New Zealand (earning 2.5% in my standard savings account) and have an effective negative interest rate (but alas, I will still be paying 1.99%).
Which Credit Unions are offering 1.9%? Are they open to the public?
My local credit union (Cheney Federal)has online information indicating 2.24% for loans of 24, 36, 48, 60 and 72 months. A reduction of 0.25% is applied for 10% or more down. That also makes it 1.99%. I haven't asked specially about the Model S, but I got a loan from them 7 years ago for my Prius.
At akimball: I believe it was PenFed and it was actually 1.99%. You just need to join one of their affiliated military charitable organizations (I think most are in the $15 to $25 range)and then you are qualified to join.
7 years ago was a totally different economy and your Prius didn't cost $90k.
I just contacted my credit union (Qualstar) and the rates varied from 1.99% to 20.99% on a three year loan. Which rate you get depends on your credit rating. Over 760 qualifies for the lowest rate. Longer perion loans costs more.
1.99% to 20.99% is quite a spread!!!!!!!!!!!!!!!!!!!!
USAA just emailed me back and stated they would honor their 1.79% for the my Tesla S. They did, however, state that I would need to go through the application process. So, if I get an underwriter who doesn't like it, then it may go up a fraction or so. We will see ...
How much were you planning on financing? When I spoke to a USAA rep they told me that rate was onlungoo up to $50,000 or so after that it was 3.19.
Would love to know if they were wrong.
Comment for BrianH: If deflation takes hold, it's Wells Fargo that wins (you'll be paying off a loan in dollars that are increasingly valuable in real terms). But don't worry too much - the Fed knows how to create inflation if things get really ugly!
No, it doesn't. Low interest means nothing to someone who has no confidence in having a way to repay the principal.
Know what a "Liquidity Trap" is? You can't bribe or force people to have confidence in the currency or economy.
So has anybody bought one using bank/CU financing yet? How did it go?
I posted this in another thread - just FYI, not indicative of any particular lender.
36 month lease, 36,000 miles allowed
Purchase Price: $70,000
Residual: $42,000 (60%, which is typical for a BMW for example)
Money Factor: 0.00208 (about a 5% interest rate)
Monthly Payment: $1098 (doesn't include taxes)
Traditional financing of $70,000 at 5%
36 months: $2098/month
48 months: $1612/month
60 months: $1321/month
With a 1.9% interest rate
36 months: $2002/month
48 months: $1516/month
60 months: $1224/month
Most loans would require money down of course (typically 20%), and many leases do also. There are fees and taxes also that are not shown for clarity, and they vary by state and lender.